The	  Domain	  Name	  Authority	  4 Steps to Increase Parking Revenue by 70% - With PaoloDiVincenzoWat...	  The	  Domain	  Name	  Authority	  Michael Cyger: Hey everyone, my name is Michael Cyger and Im thepubl...	  The	  Domain	  Name	  Authority	  and then rotating them amongst providers, we’ve seen that 70% lift. ...	  The	  Domain	  Name	  Authority	  Michael: What was the revenue for the 30 day test beforehand, and wh...	  The	  Domain	  Name	  Authority	  Paolo: I don’t feel comfortable doing that, but I gave the spiralfro...	  The	  Domain	  Name	  Authority	  expire. I let some phenomenal ones expire. I wouldn’t say phenomenal...	  The	  Domain	  Name	  Authority	  publishing and I used to publish about the Lean and Six Sigma method...	  The	  Domain	  Name	  Authority	  or not. Some measure it through the browser which is a little morere...	  The	  Domain	  Name	  Authority	  Paolo: For visitors, you’re probably talking about—you want to at le...	  The	  Domain	  Name	  Authority	  So a thirty day test—two weeks is about right to get a general idea ...	  The	  Domain	  Name	  Authority	  Michael: But whether you’re running your domains on Platform A orPla...	  The	  Domain	  Name	  Authority	  uniques. Then what ultimately you’re looking to derive to compare th...	  The	  Domain	  Name	  Authority	  domains they have, generally the answer back has to do with industry...	  The	  Domain	  Name	  Authority	  means, just measure that domain separately, because every domain—eve...	  The	  Domain	  Name	  Authority	  I would suggest playing with those and seeing what kind of level you...	  The	  Domain	  Name	  Authority	  Paolo: I think if you—would you like me to take a look?Michael: Yes....	  The	  Domain	  Name	  Authority	  Paolo: After you’ve segmented your list, you’ve got it into industry...	  The	  Domain	  Name	  Authority	  Paolo: It’s just a spreadsheet exercise. So you have your groupings ...	  The	  Domain	  Name	  Authority	  Paolo: Yes. I think I’m going to talk about this a little bit later,...	  The	  Domain	  Name	  Authority	  statistically significant data pool so I can test whether my new res...	  The	  Domain	  Name	  Authority	  90% confidence, but by all means get going. Play with those calculat...	  The	  Domain	  Name	  Authority	  interesting, but ultimately all you’re trying to get through is that...	  The	  Domain	  Name	  Authority	  with one of these providers and they’ve blacklisted it and they just...	  The	  Domain	  Name	  Authority	  Michael: Can some of these providers actually help you improve yourp...	  The	  Domain	  Name	  Authority	  To use your example—an automotive domain—they can make sure that’ssi...	  The	  Domain	  Name	  Authority	  You don’t touch revenue. You don’t touch a translation on the RPM. Y...	  The	  Domain	  Name	  Authority	  Michael: B.Paolo: Multiply it by 1.1.Michael: So I’m going to multip...	  The	  Domain	  Name	  Authority	  Paolo: That’s exactly right.Michael: In general, what have you learn...	  The	  Domain	  Name	  Authority	  Paolo: I can’t—I mentioned that spiralfrog one already three times. ...	  The	  Domain	  Name	  Authority	  Michael: So two weeks and then 25 providers per two weeks, plus I ha...	  The	  Domain	  Name	  Authority	  segmenting them out. I don’t know if there’s a way to do that—I’m su...	  The	  Domain	  Name	  Authority	  figure out on these different platforms based on all the factors tha...	  The	  Domain	  Name	  Authority	  Paolo: We do have other services besides our monetization platform. ...	  The	  Domain	  Name	  Authority	  know nothing about a domain, and so it really starts from scratch in...	  The	  Domain	  Name	  Authority	  Paolo: Yes, sure. Our company has a twitter account, I believe the h...
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Paolo DiVincenzo: 4 Steps to Increase Parking Revenue by 70%


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In this interview, Paolo DiVincenzo describes four steps to increase domain name PPC parking revenue by more than 70 percent, as well as how to implement the four steps in your own portfolio.

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Paolo DiVincenzo: 4 Steps to Increase Parking Revenue by 70%

  1. 1.  The  Domain  Name  Authority  4 Steps to Increase Parking Revenue by 70% - With PaoloDiVincenzoWatch the full video at: messages before todays interview educates and motivates you.First, if you’re a domain name investor, don’t you have unique legal needsthat require domain name technical know-how and industry experience?That’s why you need David Weslow of Wiley Rein. Go search for DavidWeslow on DomainSherpa, watch his interview and you can see for yourselfthat he can clearly explain issues, can help you with buy/sell agreements, dealwith website content issues and UDRP actions, and even help you write yourwebsite terms and conditions. David Weslow is the lawyer to call for Internetlegal issues. See for yourself at, managing multiple domain name marketplace and auction siteaccounts is a pain. Inevitably, you forget to sign into one and lose a greatdomain…or worse. Now imagine using a single, simple-to-use andcomprehensive control panel to manage all your accounts. That’s Protrada.You can setup search filters, analyze domains, automate bidding, list domainsfor sale, and buy domains across all major marketplaces. Protrada also has anew semantic engine that builds Google-friendly websites with rich contentand network feeds. Sign up at to get 20 free credits and startbuilding and monetizing your domains today.Finally, if you have questions about domain names, where should you go toask them? The answer is Not only is DN Forum the largestdomain name forum in the world, but its the best. You can learn aboutdomain names and the industry, buy and sell domain names, talk aboutdomain name news, and meet other domainers just like yourself. Register fora free DN Forum account and begin advancing your skills and knowledgetoday. And when you do signup, send me a friend request so we can connect.Heres your program.Paolo DiVencenzo ( Page 1 of
  2. 2.  The  Domain  Name  Authority  Michael Cyger: Hey everyone, my name is Michael Cyger and Im thepublisher of – the website where you come to learn howto become a successful domain name entrepreneur directly from the experts.Then, when you have a success to share, you can come on the show and giveback as todays guest is going to do.Heres todays question: How do you dissect your domain name portfolio andgenerate 70 percent more revenue from it by doing that dissection?Joining us to answer this question is Paolo DiVincenzo. I met Paolo at theTRAFFIC conference in Florida last October, and hes a great guy, veryknowledgeable. Paolo is the General Manager of DomainPower, a division ofDomain Holdings.Paolo, welcome to the show.Paolo DiVincenzo: Thank you, Michael. Its great to be here.Michael: How did I do on your name, by the way?Paolo: You did great!Michael: Nice. All right. So, Paolo, I threw out a pretty big question at thebeginning of the show. You’ve spent months working on this problem. Canpeople with a domain portfolio of hundreds or thousands—that’s just all overthe place, and we all have them. We have dogs in our domain, we havedecent domains in our domain portfolio, and we might have some great onesif we’re fortunate, but a majority of us have "dogs" to ok domains.Paolo: Right.Michael: Can people take that type of portfolio in the hundreds orthousands—in the quantity of hundreds of thousands, and get them to 70%lift using this methodology that you’re going to be talking about today?Paolo: They can. We’ve seen by taking domains off of a single PPC feedand putting them and segmenting out those domains in individual verticalsPaolo DiVencenzo ( Page 2 of
  3. 3.  The  Domain  Name  Authority  and then rotating them amongst providers, we’ve seen that 70% lift. Yourindividual results may vary, but if you can take away one message from this,it’s that the key to it all is segmentation. Different domains are going toperform differently in different places, and the key to getting that 70% lift orwhatever you’re going to see is really breaking up your portfolio intelligentlyand finding out where those groups perform best.Michael: Is there a representative domain that you can throw out from thisportfolio and tell us what the domain is, what the revenue was before, andwhat the revenue was after you did this? After you came up with thismethodology and process for monetizing it?Paolo: I’ll tell you one domain that we had actually put a lot of work intobefore it started performing. This was not simply a matter of taking a domainand testing it on different platforms and seeing where it ended up; it wasmore a matter of taking a domain, testing it, finding out what’s failingbasically everywhere, looking at why it was failing, and then making sometweaks to the domain to get it to perform.The domain I’m talking about is What is that?Paolo: It used to be a download site for free downloads. It was blocked byone upstream provider, so one major PPC provider wasn’t even serving adson it. That was one problem. The other PPC provider just didn’t recognizethe term. They were serving up ads regarding frogs and other things thatwere irrelevant. It was just overall not monetizing well.So what we actually had to do with this domain was we put it on what we callour “content framework,” and we had to populate it with some content so thatthe search engines could read it effectively and know what it was about. Andit was about downloads, not frogs. That’s an example of a highly manualoptimization process, but it’s an example of where you can take a domainthat’s doing absolutely nothing beforehand, and tweak it to get it to perform.Paolo DiVencenzo ( Page 3 of
  4. 4.  The  Domain  Name  Authority  Michael: What was the revenue for the 30 day test beforehand, and what wasthe revenue for the 30 day test after?Paolo: To be honest, I don’t have those particular figures for that particulardomain. the 70% that I gave you earlier, that was on a whole portfolio ofdomains, so that was an individual’s portfolio that we took off of ourstandard PPC feed and then started routing it in these groups throughpartners.Michael: I think a lot of people, Paolo, and we talked about thisbeforehand—a lot of people are hesitant to believe some of the claims thatpeople make in the industry. It’s completely acceptable. I have problemsaccepting some of the claims, too. You just never know if you can trust someof the data that some providers are giving you. There’s a lot of people out onthe internet that say they’ll make you money and they’re just scams. So Iwant to say before we start this interview that Paolo was kind enough to sendme a portfolio of 9800 domains—is that how many was on the list, Paolo?Paolo: That’s correct.Michael: And he showed me the revenue that they were generating fromparking for a 30 day test period prior to this methodology that we’re going todiscuss today, and then a 30 day period after he went through hismethodology and system. I can verify it. I’m looking at the numbers, andit’s actually more than 70%, but it’s a phenomenal outcome from this, and sothere’s a lot of domains here.I don’t want to read any of the domains, Paolo, like we discussed in the pre-interview, but if there’s any—and clearly they range from some domainshave very little benefit and some domains a tremendous amount of benefit.Actually, a lot of the domains have a tremendous amount of benefit.Are there any from that list that you want to just throw out as a matter ofexample, or do you not feel comfortable doing that?Paolo DiVencenzo ( Page 4 of
  5. 5.  The  Domain  Name  Authority  Paolo: I don’t feel comfortable doing that, but I gave the spiralfrog example.That’s one in particular that we did significant work on and that’srepresentative of what we do.Michael: You have a four step process that you use to quantify this revenuelift and quantify your process that anyone can apply to their portfolio. We’regoing to go over that process. But first, I’d love to find out whatentrepreneurs and investors were doing just before their current work. Whatwere you doing prior to becoming general manager of DomainPower?Paolo: My background in domain is actually just five months old. But I’vebeen working in the internet industry since 1999 in product managementroles and in senior marketing roles.I started my career with AT & T. I quickly hopped to a startup I was their VP of Product Management there, and we wereacquired by We produced real estate products for theinternet—informational products, very similar to what you see inZillow[.com]. Like I said, ultimately we were acquired, and then shortlyafter that, I started my own company.My business was acquiring small e-commerce sites and streamlining theiroperations. We would bring them in house, make them profitable again, andthen we would scale them up mostly throughout online advertising.I’ve got a long history in optimizing and working with assets with potentialthat maybe are underperforming, and I’d say it’s probably that experiencethat’s been most relevant to the domaining industry.Michael: People always want to know what kind of domains theinterviewees have that come on the show. Do you have a domain portfolioyourself?Paolo: I do. I have a very small one that actually came with acquisitions ofe-commerce sites. Every e-commerce site I would buy would have maybe 10or 11 periphery domains and yet I kick myself for doing this now, knowingwhat I know about the industry, but I used to just routinely let all of thosePaolo DiVencenzo ( Page 5 of
  6. 6.  The  Domain  Name  Authority  expire. I let some phenomenal ones expire. I wouldn’t say phenomenal, butgood enough to be making me some money now.So I have a small portfolio. I have maybe 50 domain names that I keep.Michael: I’m sure a lot of the domainers that are watching this show loveyou for giving back to the community during those prior days.The 50 or so domain names that you have—are some of those developed e-commerce sites that you just run on the side, or are they just all—are youdone with the development and those are just undeveloped domains?Paolo: I’m all done. Prior to taking this job, I actually wound down myentire business, which was the process of selling. I had roughly 12 e-commerce websites. I actually grouped those up into industries and then soldthem to competitors. I no longer hold e-commerce businesses, but I do owndomains that were part of those businesses.Michael: Are you allowed to use DomainPower to monetize those remainingdomains you have?Paolo: I do. I brought them all on the platform.Michael: Excellent. Have you seen a 70% lift in revenue as a result ofbringing those to the platform?Paolo: No, because most of them are real e-commerce sites that are sellingproducts, so I did not see a revenue lift, but I’m sure if they were on otheralternatives, they’d be seeing that 70% lift.Michael: Let’s go through your four step process. Let me give the audiencean overview of the four steps because you shared your process with mebeforehand, which I appreciate, and then we’ll go through each of the steps indetail.The first step was “Establish a baseline metric for what you’re doing.” A lotof the DomainSherpa audience realizes that I came to DomainSherpa fromPaolo DiVencenzo ( Page 6 of
  7. 7.  The  Domain  Name  Authority  publishing and I used to publish about the Lean and Six Sigma methodologyfor process improvement.There’s a famous quotes out there: “You can’t improve what you don’tmeasure.”I commend you for having the first step be to “Establish a baseline.” Youneed to measure it.Your second step is to “Group domain names.” The third is to test them, andthe fourth is to optimize them. That’s the high level.Let’s go to the first step: Establish the metric in your baseline. How do youdo this?Paolo: The most important part of this is that everybody measures visitorsdifferently. One thing I learned in the industry—there’s sort of a roughindustry standard for how you do that, but the actual execution is so differentfrom one company to another that the number of visitors varies so greatly thatyou really can’t use the visitors you’re getting out of their control panel as abaseline.Michael: I never realized this before. So when you go to Parking CompanyA, let’s say, and they tell you on your dashboard on their system that yourrevenue per thousand visitors is a dollar and you go to Parking Company Band you have some domains over there, and they tell you the revenue perthousand visitors is two dollars, you can’t say B is better than A, becausethey might be measuring things differently is what you’re saying.How is that? How come they don’t define it in the same way?Paolo: Pretty much everybody looks at a unique visitor as somebody who’svisited once within the past 24 hours. That part tends to hold betweencompanies. It’s how people measure that’s different.Some people are doing it with a server and when the server sees a visitor, it’sa little more open to how it determines whether somebody’s a human beingPaolo DiVencenzo ( Page 7 of
  8. 8.  The  Domain  Name  Authority  or not. Some measure it through the browser which is a little morerestrictive, so the browser will filter out crawlers and bots and other thingsthat are impersonating people. So there are just different ways of measuringthat totally change the results.What we definitely see is in looking at one platform versus another—therecan be a 300% difference in how they’re measuring visitors which translatesinto a 300% difference in revenue per thousand visitors if you’re looking atequal revenue. The variance is all over the place. You can really pay noattention to the numbers that you’re given for unique visitors. You have toestablish a translation yourself.Michael: How do you do that?Paolo: The first step is figuring out which—if you’re testing between twoplatforms, it’s figuring out which platform you’re going to use as the goldstandard. You have to—in one platform is the one that you are going to useto measure the others.Michael: Is it actually a gold standard, or is it just a baseline where you’resaying you’re going to compare everything to this one?Paolo: It’s a baseline.Michael: So you can pick any of them, you just need to say, “I’m going tocompare the other ones to this one.”Paolo: That’s exactly right.Michael: So you do that, knowing that not every platform calculates yourunique visitors the same way and your revenue per thousand. As a result ofthat, you then choose one as a baseline and you compare the others to it.What kind of sample size do people need to take in order to establish theirbaseline?Paolo DiVencenzo ( Page 8 of
  9. 9.  The  Domain  Name  Authority  Paolo: For visitors, you’re probably talking about—you want to at least lookat 1,000 visitors. More than a number, what you’re looking for is atimeframe. So what you want to do is you want to take a group of domains,you want to let them run at least a week on one platform, and then let themrun at least a week on another platform.Assuming they’re getting pure type-in traffic, and there’s no paid traffic tothe domains, you’re going to see more or less your multiplier between thedifference of uniques on one versus the other over the course of the week.The reason you want to do it over the course of the week is because weekendtraffic looks totally different than weekday traffic, and you definitely want toinclude a weekend in your time span.Michael: So at least a week so you get that weekend traffic because you mayhave something that has more traffic as a result of consumers who have morefree time on the weekend versus business users during the week which youmay not capture on the weekend. At least a week, but if somebody reallywants to do a good test, do you suggest two weeks or a month?Paolo: I would go a couple weeks just in case you’ve had a weird spike oneday, those few weeks will sort of smooth that out.Michael: In the data you sent me beforehand, you actually did it for a month.Paolo: That’s correct.Michael: Was that just to get an even bigger sample size? To have a higherconfidence level?Paolo: We’re just talking about uniques. The reason why we would letthings run for a month is beyond just traffic. It takes a while for revenue toramp up on any given platform. So if a platform’s seeing a domain for thefirst time, it’s going to take a little while for its upstream provider to read intothat domain and serve relevant ads, and then a lot of platform providers putsome work into optimizing those domains. so we really don’t see them startto plateau out on performance until about two weeks.Paolo DiVencenzo ( Page 9 of
  10. 10.  The  Domain  Name  Authority  So a thirty day test—two weeks is about right to get a general idea of howsomething’s going to perform in a certain place. A month is rock solid.Michael: If you’re going over there, you’re probably wasting some moneyby not having them optimized.Paolo: Yes, exactly. You have to make a decision one way or another.Michael: So you use one platform as the basis and then how do you comparethe other ones to that one?Paolo: You run traffic on one platform for a given amount of time, and yourun it on another platform for a given amount of time, and then you figure outthe difference between the visitors and that difference becomes yourmultiplier.So from now on when you see visitors on that other platform, you multiply itby the multiplier to translate it to your baseline platform visitors.Does that make sense?Michael: No, because how do you calculate the multiplier?Paolo: I’ll give you an example.Let’s say you take your group of domains, you run them on one platform, andyou generate 1000 visitors. Over the course of two weeks, you take thatsame group of domains, and you run it on Platform B over the course of twoweeks. It’s 2000 visitors. Now you know every time you run domains onthat other platform, you have to multiply the numbers of visitors by 0.5 inorder to translate RPMs back to your baseline.Michael: Were you saying 1000 visitors or 1000 dollars?Paolo: 1000 visitors.Paolo DiVencenzo ( Page 10 of
  11. 11.  The  Domain  Name  Authority  Michael: But whether you’re running your domains on Platform A orPlatform B, all the domains aren’t developed, so they’re all typed in traffic.So I would assume that they would have the same count of unique visitors onPlatform A or Platform B.Paolo: But they don’t, because it depends on the way that the platformmeasures any visitors.Michael: So what you’re saying is they actually should be the same, butbecause they measure differently, you’re calculating the multiplier so thatyou can figure out the baseline. So you can look at the same group ofdomains across them.Paolo: Right.Michael: I got that. That makes sense. So the assumption is that you do getthe same amount of type ins over a long period of time just because they’rebeing—just because they’re parked. There’s no development going in,there’s no search engine optimization; just the common cause sort ofvariation of the domain name should match up between the two.Paolo: That’s right. And there are some caveats to that. Once in a while,you’ll pick up a domain that’s got a lot of existing links. So it was onceanother website that had a lot of inbound traffic, and that stuff tends to expireover time. If you know that you have one of those in your portfolio, pull itout for a test, because it’s going to skew your results.Michael: That makes sense. While you’re testing Platform A, and thenparking Platform B, you are also generating revenue at those two places.Paolo: Correct.Michael: Do you want to record that as well?Paolo: Yes, absolutely. This test records revenue, it also records yourbaseline. Ultimately what you do is you use that multiplier I was talkingabout to establish a common denominator between platforms in terms ofPaolo DiVencenzo ( Page 11 of
  12. 12.  The  Domain  Name  Authority  uniques. Then what ultimately you’re looking to derive to compare the twoplatforms is that revenue per 1000 visitors that you’re talking about. That isthe metric that you’re trying to get accurate to compare two platforms.Michael: I think I get the first step. You’re going to take—if you want tocompare your domains on Platform A and Platform B and Platform C, youtake all of them, you move it let’s say to Platform A, you record the numberof unique visitors and the revenue, then you go to Platform B for two weeks,you record the unique visitors and the revenue, you go to Platform C, twoweeks, you do the it the same way—and then you can come up with themultiplier based on unique visitors for the three platforms.So if Platform A has 1000 unique visitors, and Platform B has 2000 uniquevisitors, the multiplier from A to B is 2. So you want to divide, later on inthis process, Platform B by 2 in order to get an equal amount.Paolo: Exactly.Michael: And then you’re also going to have the revenue, but we’re notdoing anything with that yet.Paolo: No, once you have your baseline, that’s something you can use in allof your tests. So this is just the initial step is to get that baseline. Then youworry about revenue.Michael: Makes sense. Now we’re on Step 2 which is to group the domains.Paolo: That’s right.Michael: What does that entail?Paolo: This is super-critical. This is really where we found we got themajority of the lift is in intelligently grouping the domains. Groupingdomains that behave the same for whatever reason.The first grouping that we do—and that I would recommend a domainer do—is industry. It’s the most common one when you ask somebody what types ofPaolo DiVencenzo ( Page 12 of
  13. 13.  The  Domain  Name  Authority  domains they have, generally the answer back has to do with industry: “Ihave travel domains. I have credit card domains.” That is definitely the firstgrouping you should do.Michael: So that means that you go through your list of 50 or 500 domainsand you try and group them by industry. So you take all the automotive onesand you put them at the top, and then you put healthcare ones, and then youput education ones . . .Paolo: That’s right. And you can get as granular as it makes sense. Onething you don’t want to do is have thousands of groupings and then end upwith 2 or 3 domains in each grouping. The whole point behind grouping is tocombine the visitors within a group of domains so that you can get significantdata back when you go and test that group.So you have to make sure that that group has enough traffic to where you’regoing to have significant results back in a couple weeks or else you’re goingto deploy a group of two domains on a platform and you’re not going to haveany results back for six months. There’s not much point to doing that.Michael: That makes sense. Now what if people’s portfolios are just all overthe place? Like what if they’ve got a ton of brandable domain names? Whatdo they do with those?Paolo: Those ones are tough. If they’re already receiving a certain amount—a good amount of traffic, then you can test those independently. If they’renot, though, and they don’t fit into a group, there’s no such industry as‘brandable.’ You’re kind of stuck with an amorphous blob that you’re justgoing to have to test as group unto itself.Michael: So the ones that just stand alone by themselves, you’ll—those areoff to the side. What about high traffic domains? Ones that you know get aton of traffic?Paolo: Those should be tested independently. The reason why we groupdomains, or the reason why we advocate grouping domains is so you getsignificant data back. If you’re already getting that on a single domain, by allPaolo DiVencenzo ( Page 13 of
  14. 14.  The  Domain  Name  Authority  means, just measure that domain separately, because every domain—even ifit’s in a certain industry or even if you can group it with similar domains, isgoing to behave a little bit differently by itself. If you can measure that andoptimize it, then by all means do so.Michael: If somebody is looking at their domain portfolio and they’reparking right now, what is a high traffic domain name, in your opinion?Paolo: That’s tricky. It’s driven by many different things. What you’relooking for is enough data to make an intelligent decision. Now, whether youwant 90% confidence in that decision or 80% confidence in that decision isup to you and that’s one of the things that drives how much data you’re goingto need back.My policy is a rough guideline, I wouldn’t make a decision until you getabout 400 uniques on the domain and you have a revenue that ties into about400 uniques on the domain.Whether you’re going to run the domain by itself also depends on how longyou’re willing to wait to make a decision on it. I wouldn’t wait more thantwo weeks to a month. So I’d be looking for a domain that has at least 400visitors per month.Michael: So if it does have at least 400 uniques per month, then that’sconsidered high traffic and you’re going to want to test that one on its own?Paolo: I would. Like I said, it depends on your patience and how accurateyou want to be with your decision. In fact, there are a lot of online toolswhich I use all the time to calculate your sample size. So what they let youdo is you plug in your confidence level and you say, “I want 90% confidenceor I want 85% confidence,” and then you put in some sort of measure—thevariability and the results. In the case of, unfortunately, pay per click, it canbe 5 cents or it can be 5 dollars. There’s a high degree of variability. Thenyou hit “submit” and it tells you what you need for your sample size.Paolo DiVencenzo ( Page 14 of
  15. 15.  The  Domain  Name  Authority  I would suggest playing with those and seeing what kind of level you’recomfortable with. 400 kind of sticks in my mind as a rough rule of thumb forhow many uniques you need to have to make the decision.Michael: So you’ve got your portfolio, you take out your brandable oneswhich probably aren’t going to get very much traffic, but you want to keepbecause you think they’re going to be valuable over time, that you might beable to flip them. You bought it for some amount of money and you thinkyou might be able to get some multiple of that in the future. You put yourhigh traffic domain names which we just discussed, which you’ll probablywant to evaluate separately, and I’m going to come back to that question.But then you’ve got the masses in your domain name which most of us have,and you’re saying the first step in the grouping step—Step 2—is to figure outthe industry segmentation. So you go through and you figure out what’sautomotive, what’s healthcare. There are big industry groupings out there. Ifpeople aren’t sure that they are using the right industry segmentation, Paolo,is there a list on your website that they can go look at that you know are goodsegments that monetize, that anyone may want to consider?Paolo: Yes, there is in fact. When we first launched DomainPower, we builtup landing pages for the high paying verticals and so we’ve got thoseverticals broken down. I think we’ve got 14 of them and we have individuallanding pages for those 14 verticals, and those are either high pay per clickverticals—so things like credit cards, mortgages--or they’re high pay per leadverticals which is another way that we monetize. In either case, parkingwon’t make you a lot of money in those verticals, because people who areharvesting leads are also buying pay per click ads and they’re paying a lot forthose.Really what you’re looking for in terms of verticalizing—one of the firstthings you want to look at is industries with a high volume of advertisers whopay a lot per click.Michael: I just visited and I’m looking for that listing ofindustries where clearly you have them. I can see shopping, insurance,travel, but I don’t see a full list on here.Paolo DiVencenzo ( Page 15 of
  16. 16.  The  Domain  Name  Authority  Paolo: I think if you—would you like me to take a look?Michael: Yes. Can you? Let’s find this for people.Paolo: Yes, we used to have a summary on the website.Michael: Let’s find this so that we can refer people to this list to make sure,because you guys have spent a lot of time looking at all the differentindustries which is not just people searching for it, but you need the volume,and you also need the advertisers that are willing to pay for that, and so Iknow that I’d never seen a full list from somebody. I’m sure that a lot ofdomainers have seen it, and I know that a lot of domainers have their ownlist, but for those that are brand new to this, being able to refer to a list I thinkwould be useful.Paolo: I’m looking and I don’t see one, so I might have misspoken.Michael: What we’re going to do is, Paolo, can you—after this interview,we’ll post the list either below the interview, or if you want to put it up onyour website, then I’ll put a link to that from the interview page.Paolo: Yes, that would be fine.Michael: So we’ll do that.So the industries are defined and people can look through theirs and they cansegment them out. What are some of the highest PPC verticals that you’vefound that are currently?Paolo: Credit card is a big one. Education is a really big one. Legal isanother big one. Mortgages still is a big one; it was much bigger.Automotive is another very, very good one. Travel is another good one.Those are the ones that occur to me off the top of my head.Michael: After you’ve segmented your list, then what do you want to do?Paolo DiVencenzo ( Page 16 of
  17. 17.  The  Domain  Name  Authority  Paolo: After you’ve segmented your list, you’ve got it into industrygroupings now. Look at the individual domains within those industrygroupings and the next cut that I like to do is what I call “user intent.”You can take a domain and you can clearly establish which industry it fallswithin, but in order to determine what somebody wants to see when they landon that page, you have to look at it in terms of user intent.I’ll give you two examples that I like to throw out. Certainly within thetravel industry, there’s a high degree of variation in the meaning of domainnames. So somebody who’s looking for a site called islooking for totally different content than somebody who’s trying to visit a sitecalled The RomeFlights person is just looking to comparethe cost of flights to Rome or possibly book a flight to Rome. So in that case,what they’re probably looking for is some sort of Kayak-type engine wherethey can punch in their departure date and get the best fares. Somebodywho’s looking to visit Rome is looking for content. They’re probablylooking for information on the city, major sites, and in that case somethingtotally different is going to drive conversion.That is the next segmentation I would do, and that segmentation totally drivesdifferent results in terms of conversion.Michael: If I’m thinking about visiting Rome and I know that there’s a lot ofcities used to visit as their branding because they didn’t grabthe city name early enough in the registration process. If I’m going to, I may want to download a PDF or an e-book, or I mayactually buy a book and have it sent to me, or I may want a snapshot of thecity with maps and all the critical visitor interest points identified on thatmap, versus the RomeFlights that you’re talking about.So you’re going to monetize them differently is what you’re saying.When you have your domains broken out into your industries and then youlook at the five within travel, how do you notate VisitRome versusRomeFlights user intent?Paolo DiVencenzo ( Page 17 of
  18. 18.  The  Domain  Name  Authority  Paolo: It’s just a spreadsheet exercise. So you have your groupings in aspreadsheet and then what you’re ultimately looking at once you tag thosedomains, is you’re looking to come away with a list of domains which you’regoing to test independently.Michael: So you would test differently It would be its own group. It would be a subgroup of travel. So youwould have your group “Travel,” and then your subgroup of “want to explorea destination” and your subgroup of “wants to buy a ticket.”Michael: Is there anything else that people need to think about as they’resegmenting their domain names within those groups?Paolo: Yes, the other big segmentation we do—there’s three that we look atprimarily—the other big segmentation is geography which is . . . The waywe do it is we look at where our visitors are coming from. We do thatdynamically on the server and then we route the domain to where thatindividual visitor or that individual visitor’s geography’s going to monetizebest, and that differs between platforms. It’s a little tough to do if you’re adomainer looking at a portfolio and trying to do this manually, but what youcan do is CCT [00:31:00 Unclear. all these? all leads?] and segment thoseout. For example, if you have a lot of’s, there are certain platforms thatdo better with traffic than with American traffic and you can routethose differently as well and test them differently as well.Michael: So if you have a bunch of domains because you love .ca for Canadaor you’re from Germany, so you bought .de’s, you’re going to want to breakthose out separately from everything else because there might be betteroptions to monetize those ccTLDs—country code top level domains.Paolo: That’s right.Michael: Is there any other things you’re going to want to do as you’relooking at your portfolio and grouping them?Paolo DiVencenzo ( Page 18 of
  19. 19.  The  Domain  Name  Authority  Paolo: Yes. I think I’m going to talk about this a little bit later, butultimately what you’re going to see is that some domains—for whateverreason—just don’t perform well. Even if they’re broken out. They lookdifferently than the rest of the group. Those are unique things. I gave youthe example of spiralfrog earlier and that’s a good example of something thatwas just sort of mystifying and needed to really be manipulated on its own todo anything.The three segmentations I mentioned are the big ones I was going to cover.99% of the optimization—there’s always going to be that 1% outlier thatneeds a little help on its own.Michael: So that’s step 2. You want to segment your domain names, look atthe user intent within each of those segmentations, and see if you cansegment them further, and then look at geos also and you’ll want to separatethose further.Paolo: Right.Michael: So step 3 is, now that you’ve done all this segmentation, you knowhow things should be breaking out, what is step 3?Paolo: Step 3 is to test them. I’ve alluded to that’s what we’re going to donext, but you take the groups of domains and you look at how much trafficthey’ve received, and then you determine how long you have to run them ona given platform to get significant data back in order to make a decision onhow that platform is performing.Michael: So we ran the test before and we know that certain domains get acertain amount of traffic already.Paolo: Right.Michael: A, B, C domain dot com. You ran it in Step 1. You got yourbaseline, let’s say it’s 100 unique visitors within a 2 week period. So I groupthat into—I don’t know—some grouping, let’s say. And what you’re sayingnow is that I need to understand the sample size necessary to get aPaolo DiVencenzo ( Page 19 of
  20. 20.  The  Domain  Name  Authority  statistically significant data pool so I can test whether my new result is validagainst my old result?Paolo: That’s right. So you look at your group of domains. Let’s say I havea group of domains and it totals up to 50 visitors a week. You look at thatand say, “That grouping might be a little bit too small. I don’t feel likewaiting four months for my data to come back and make a decision.” So youmight want to take that group and combine it with another group. And thenonce you have a group that has enough visitors to get you back data in atimeframe that you’re comfortable with—like I said, roughly speaking, tryfor under a month—then you take that group of domains and put it on aplatform for that time period that it’ll take you to get data back.Michael: I understand. So you’ve done this analysis on sample size usingthe calculators online and people can go search for sample size calculation.You’ve determined that probably about 400 visits—unique visitors—pergrouping will give you a 90% confidence in the results?Paolo: Right.Michael: So you’re saying if you took a group and you moved them to a—that was getting 50 visitors per day, let’s say—you would need to run it forfour days at a platform—I’m sorry, eight days—in order to get 400 visitors tobe able to say you have a high confidence interval in that new data thatyou’re getting?Paolo: That’s correct. And I’ll add one more thing to that is you really wantto give a group of domains at least two weeks to run on a platform because ittakes that long for performance to ramp up. I wouldn’t go for shorter than 2weeks.Michael: So two weeks and/or 400 unique visitors, whichever is longer?Paolo: That’s right. And the 400 visitors is just sort of a rule of thumb. Iwould hate for somebody to stick to that and think it’s gospel. It’s a rule ofthumb I use in my head. It seems to work out that way if you’re looking forPaolo DiVencenzo ( Page 20 of
  21. 21.  The  Domain  Name  Authority  90% confidence, but by all means get going. Play with those calculators thatI was talking about to determine the real numbers for your portfolio.Michael: Let’s just say it takes a month to get 400 visitors for me becausemy domains really stink—which they do. So then, I’m going to go to thesame platform that I did my baseline on? Am I going to run them thereagain?Paolo: No, if you’ve already got data on those domains, don’t bother.You’re looking for new data.Michael: So I’m going to go to Platform B, and I’m going to put themthere—that group of domains, but I’ve already run them at Platform B tobegin with, right?Paolo: You ran at least some of them to get your baseline. When you’relooking for your baseline for unique visitors, you don’t have to run yourwhole portfolio on that. All you’re looking for is a translation. You can usea representative sample of your domains to get enough unique visitors backto develop that visitor multiplier.Michael: So you can take, say, 30 domains out of your 500 domain portfolio,leave all the rest at parking where you’re generating money, and then you canjust move between them and get your multiplier number?Paolo: That’s right.Michael: And then after you get the multiplier, now you’re—you moveforward. You’re now on Step 3, and actually you can be doing your Step 2while you’re getting that multiplier, and now you’re on Step 3 and nowyou’re going to take that group of domains, move them over to Platform Band run them for an appropriate amount of time like we’ve discussed.What kind of data are you gathering?Paolo: You’re gathering revenue and unique visitors. That’s basically allyou need. Some platforms give you click through rates which is anecdotallyPaolo DiVencenzo ( Page 21 of
  22. 22.  The  Domain  Name  Authority  interesting, but ultimately all you’re trying to get through is that revenue per1000 visitors. That is going to be what’s going to make your decision.Michael: Is there anything else that we’re going to do in the testing phase?Paolo: No, that’s it. Just run them for no less than two weeks, get your databack, and then determine your revenue per 1000 visitors and that’s what’sgoing to make the decision.Michael: So that’s Step 3. A lot of these platform—these parking companieswill allow you to group your domains, so you can move them in easily andkeep them in a group and then look at the revenue per 1000 that’s coming in?Paolo: That’s exactly right. Most platforms will let you develop what theycall folders or they call them portfolios and they’ll let you segment out yourportfolio.Michael: And it’s actually going to tell me the revenue per 1000 by domain,right?Paolo: That is right. It’s going to tell you your revenue per 1000 by domain,but don’t pay attention to what they tell you. Make your own number. It’lltell you revenue, it’ll tell you visitors, and then you do the translation, andthen you determine the revenue per 1000 visitors.Michael: So your final step is to optimize. So I assume that you’re going totake this data and now you’re going to do something with it?Paolo: That’s right. So you’re going to take a look at this data and you wantto look for those outlier instances where something’s really just notperforming. Oftentimes what’ll happen is if a platform is using a certainupstream provider, be it Google PPC, or Yahoo! PPC, that upstream providerwill have blocked your domain.There’s really—it’s not predictable which domains they block, unfortunately.The domain could have an ancient history that has nothing to do with you. Itcould have a history of arbitrage or something else that’s given it a bad namePaolo DiVencenzo ( Page 22 of
  23. 23.  The  Domain  Name  Authority  with one of these providers and they’ve blacklisted it and they just won’tserve ads on it.What’ll happen sometimes is some platforms will just not serve ads on thedomain, or they’ll serve ads from a third tier provider which don’t monetizeparticularly well. So look for those outliers that are just doing really poorly.That’s part of the optimization.Michael: Most of my domains perform poorly. Why aren’t they all theseoutliers that are maybe even blocked? How do I know that a domain shouldbe performing well, but isn’t?Paolo: One thing you can do is you can try it on different providers. If itdoes really well on one and really poorly on another, there’s something tothat.Michael: So looking across the different parking companies will tell you ifthat’s a potential outlier because one may use a direct Google feed andGoogle is blocking it for some reason, but another one may use third partyleads where you can’t be blocked and people are paying you for filling out alead form and so that would be a good way to compare the two..Paolo: You’re exactly right. It’s more likely the Yahoo! versus Googledifference, so Google, they try to have exclusive providers. So if Google isblocking the domain, there’s really not a lot the platform can do for thatdomain. If they are blocking it, then send it to somebody who’s got a Yahoo!feed, and chances are, they’re going to do better with it. These are the sort ofdifferences that you’re looking for.Michael: What do you do if you do find some of those differences?Paolo: Then you pull the domain out of its group because it’s performance isnot relevant to that group, and you put it in its own group and then you callthat group “Google blocked” or “Yahoo! blocked” and you send that to aYahoo! or a Google feed provider depending on where it’s going to performbest.Paolo DiVencenzo ( Page 23 of
  24. 24.  The  Domain  Name  Authority  Michael: Can some of these providers actually help you improve yourperformance within these different groups?Paolo: They can, and that’s a huge optimization step and most of them, theyhave a vested interest in seeing you do well on their platform, so—Michael: Because they make more money as well. They—most of them aretaking a cut of the revenue generated, right?Paolo: That’s right, so, in every case I would establish a relationship with theparking platforms that you’re testing out. Let them know which domains youhave on their platform, let them know which domains you expect to do well,and let them optimize, because a lot of them—they can do manual work tohelp those domains do better.Michael: I know you know all the providers out in the space, and I knowsome of the providers out in the space, because we go to the conferences, sowe either meet the founders, or we meet the people that are in charge of thecompany. But most of the people watching this show—they don’t haveaccess to those people. Is it as simple as saying, “Hey, I’ve moved these tenautomotive, car buying related domain names to your service and I want tooptimize them.” And email into the help desk or something and say, “Arethere some seed terms or is there something else that I can do to improvetheir performance?”Paolo: I never looked at it. I’ve never been in that position where I had to dothat, but I know everybody’s hungry for customers and everybody knows thatthe key to a customer’s heart is going to be producing the most revenue forthem. I would hope that you could—it might take a little perseverance, butI’m hoping that you could find somebody who was willing to lend a hand indoing that.Like I said, they all have ways of optimizing. I think you had mentioned seedterms earlier. That’s a huge one, so if they see that they can seed a domainwith a certain term or feed that domain to the upstream provider so that it canserve back relevant ads, that’s something they do. And then they put that thedomains on relevant templates. That’s another thing that they can do.Paolo DiVencenzo ( Page 24 of
  25. 25.  The  Domain  Name  Authority  To use your example—an automotive domain—they can make sure that’ssitting on their automotive template or whatever they’ve tested and proven tobe the best-performing template for that given domain.So there’s a lot of work that they can do, and like I said, they have an interestin producing revenue for you, so I’d hope that they’d lend a hand.Michael: So we know our multiplier, let’s say, from parking company A to Bis 1000 uniques to 1100 uniques. So the multiplier on B is 1.1 compared toA. And then we know the baseline revenue of those domains in parkingcompany A and then we know the revenue of those domains in parkingcompany B.If B is making less money or more money, how do we use the multiplier to beable to compare it directly to parking company A?Paolo: If it’s making more or less money on an absolute basis, or an RPMbasis?Michael: On an RPM basis, I’m sorry. You tell me what we want to look at.How do we compare the two using the multiplier?Paolo: You just made the comparison. That is what you want to look at.You want to look at the RPM for the group between the different providers.Once you’ve done your translation of the visitors using the multiple wetalked about.Michael: That’s what I wanted to know. How do you take that multiplierand convert the RPMs so that it’s apples to apples?Paolo: First, you leave the revenue alone. The only thing you translate is thedenominator. Parking platform comes back with saying, “This group ofdomains had 10,000 visits,” and you multiply that 10,000 by your multiplier.You leave revenue where it is, and then you—whatever the calculation is onyour visitors, that becomes the new denominator, and that’s how youcalculate your RPM.Paolo DiVencenzo ( Page 25 of
  26. 26.  The  Domain  Name  Authority  You don’t touch revenue. You don’t touch a translation on the RPM. Youdo it on just the visitors.Michael: So they’re giving you RPM numbers, but you don’t care aboutthose. You take the unique visitors and then the revenue that you’regenerating and then you just put the revenue over 1000 visitors?Paolo: That’s right.Michael: You generate your own RPM. And then you want to use themultiplier on the unique visitors to bring them back to the same level?Paolo: I’ll start from the beginning. So your platform hands you back twonumbers. They hand you back $20 and 1000 visitors.You take that 1000 visitors, multiply it by your multiplier that we came upwith earlier, and let’s say the number ends up being 2000 visitors. So youtake your revenue number—I forget what I said it was. $20? And you thenput it over 2000 visitors and then the result of that is your RPM that you’regoing to use to compare.Michael: Just so it’s completely clear because I’m not the sharpest tack,parking company A and parking company B—when you were up at Step 1,“Establish the metric in your baseline,” about 1000 visitors, 1100 visitors . . .so parking company B has a multiplier of 1.1, right?Paolo: Right.Michael: So then when I go to Step 4, and I take those domain names and Iknow what my revenue is on parking company A because they’re all parkedthere and I move those five automotive domains over to parking company B,and I have, let’s say 800 visitors, I’m going to take 800 and I’m going todivide it by 1.1? Or multiply it by 1.1?Paolo: You are going—and you’re talking about 800 is parking company Bor A?Paolo DiVencenzo ( Page 26 of
  27. 27.  The  Domain  Name  Authority  Michael: B.Paolo: Multiply it by 1.1.Michael: So I’m going to multiply it by 1.1 and then I’m going to put itover—I’m sorry, get it to a 1000 basis, and I’m going to divide the revenueby that and that’s going to get me the revenue per thousand visitors.Paolo: That’s correct.It’s good that you’re bringing this one home. I started out with the whole“Establish your baseline” and that is absolutely key. We get that, and wespend a good portion of our day doing those translations because there’s a lotof misconception in the industry when people come to you with their revenueper thousand visitor numbers that those—that’s a tried and true number, thatthey vary so much you really have to start at the beginning to do thecalculation.Michael: Exactly. And everybody’s defining it differently, which issomething that I didn’t realize was happening.There’s the equivalent—I used to—at GE years ago when we weredeveloping these websites to go across multiple businesses, and we wereusing analytical companies before Google Analytics was out and we wereusing all these various companies, we would oftentimes have multipleanalytical solutions measuring a certain website, or we’d transfer from one tothe other and all of the head honchos in the company would want to know,“Is traffic increasing or decreasing?” And if you switch providers, suddenlyyour metrics are completely different. You would think that a unique visitoris a unique visitor. But it varies from the technology you’re using whetherit’s logs on the server, versus JavaScript, whether it’s being recorded by thebrowser, whether you have cookies turned off or JavaScript turned off—it’sall completely different.So it is important to make that determination on a revenue per 1000 basis andnot just trust what they’re giving you.Paolo DiVencenzo ( Page 27 of
  28. 28.  The  Domain  Name  Authority  Paolo: That’s exactly right.Michael: In general, what have you learned? After going through thisexercise with your 9800 domain names and then others that you’ve done afterthat?Paolo: I’ve learned that the key to it all—the really big difference—isdifferent domains perform differently in different places. It’s really thatsimple. If you’re looking to make the most out of your portfolio, the secret isnot looking for performance across the board. It’s not taking from oneprovider to another to the next and seeing how it does. It’s really breaking itout, and that’s where the lift is.It is incredible. You would think that there would be, say, one dominantprovider who uses a Google partner as an upstream—that is just not the case.There may be somebody who dominates in 80% of the cases, but there’sgoing to be 20% of the cases where it makes sense to take domains and putthem somewhere else.There really is a high degree of variability. To be honest, at this point I’vebeen in this job for 5 months. We’ve had our decision engine in place for 2months. At this point I haven’t really figured out the reasons behind thosevariations, but I can definitely confirm that they exist.Michael: We ran an interview with Howard Hoffman a few weeks ago.Howard has spent a lot of his career doing exactly this. We didn’t go intohow he does that, but he has determined the exact same thing. Gambling andcasino-related domain names will perform on a certain platform better thanany other platform. So knowing which domains are performing where willgive you that edge that you need in order to be able to generate enoughrevenue to pay for the domain registration for the year and / or get a multipleabove that.Which types of—what was sort of a shocker for you, Paolo? Which types ofdomains would you think would perform better across, but then don’t? Theyended up being dogs?Paolo DiVencenzo ( Page 28 of
  29. 29.  The  Domain  Name  Authority  Paolo: I can’t—I mentioned that spiralfrog one already three times. That’san example of an individual domain. But the one that took me a little whileto grab onto was definitely this user intent segmentation. I was using all theclassical segmentation—vertical is the oldest, vertical in our industry is reallythe oldest classification around, and then geography is an old one. But thisuser intent one—that was a big “Ah ha!” moment when we started to look atthese different industry classifications and how individual domains wereperforming and very differently between them. It was a realization that justbecause you can stick something into a vertical doesn’t really mean that youunderstand what the user is looking for when they get there.Michael: This process makes perfect sense to me now. I can follow it. If Iwere to do this for my portfolio, it would take a while because now thatI’ve—now that I understand my portfolio better, which is great, and it’sgoing to help me run my business better, and it’s going to help me monetizemy domains better, it’s going to help me sell them for more money in thefuture because I understand what I own better—that’s actually a lot of work.There are a lot of parking companies out there, right?Paolo: Yes.Michael: How many parking companies would you say there are? Let meask you this: How many monetization platforms do you have plugged intoDomainPower?Paolo: We have 31 in DomainPower right now. Now those includeplatforms. Your typical parking providers and those also include differentmonetization models. We have some direct advertiser relationships. Wehave zero click providers which I’m not sure if you’re familiar with those,but basically somebody types in a domain and if you have a bidder for thetraffic on that domain, we automatically redirect to that bidder.So we’ve got—our monetization partners run the gamut. I can tell you majorpartner providers—there’s at least 25 of them that I can think about there.You’re right. There’s a lot of people to choose from in terms of testing.Paolo DiVencenzo ( Page 29 of
  30. 30.  The  Domain  Name  Authority  Michael: So two weeks and then 25 providers per two weeks, plus I have tomove them all and everything. I don’t want to make this into a promotionalcommercial for DomainPower, but clearly if people have watched, orlistened, or read this far into the interview, they’re interested in this topic,they understand it better.I want to understand more about what DomainPower does. You’ve used thisfour step process on your own domain portfolios and Domain Holdings has alot of domains. I can come to you with my domains and you can do this forme and then I don’t have to do all the work myself. Is that correct?Paolo: That’s correct. When we do it for you, the bulk of our work isautomated, so we build what we call the monetization engine which I’vetalked about previously but what it does is it basically takes your domains inand runs them through this whole process that I’ve described. It takes yourdomains, puts them in the sub groupings that I talked about, and then it startsto rotate them on different platforms and actually pulls in real revenue data,does the visitor translation that I was talking about earlier and determineswhere they’re doing best.Where it differs a little bit—from other standard testing that you might beable to do, is we also have a whole warehouse of predictive data based onwhat we’ve seen with similar domains in the past that gives us an accurategauge of how we think a domain’s going to do and where it’s going to dobest. And we basically send the bulk of its traffic to where we think it’sgoing to do best right off the bat.So it’s not a long ramp up to get it to speed. We start it up pretty high, andthen we optimize it from there.Michael: It makes sense that I can give you a portfolio of 1000 domainnames and you can segment it by keywords related to the verticals, and by thegeographic factors like the ccTLDs or the IDNs, but how do you get the userintent in an automated programmatic fashion like you?Paolo: We don’t. That user intent part is a manual piece and that’ssomething we do just looking at groups of domains within industries and thenPaolo DiVencenzo ( Page 30 of
  31. 31.  The  Domain  Name  Authority  segmenting them out. I don’t know if there’s a way to do that—I’m surethere is a way, but we certainly have it figured out, and that is a manual piece.Michael: You’re taking my domain portfolio, you’re actually adding a lot ofyour technology to it, you’re adding a manual review of every single domainname to it. Do you charge for this?Paolo: We take a rev share, so a share of the revenue that we receive. Oneother manual piece that we do also is we talk with all of our platform partnersand we negotiate the best rate that we can with them, so in addition to usingour technology, you’re also using our buying power. We bring a lot of bulkto these providers and they usually get us pretty good rates as a result. Weget rates that would be hard to get if you’re just coming in off the street andworking with them indirectly.Michael: I believe that. You’re in the industry. You’ve got much more cloutthan I do with my thousand domain names because you’ve got tens orhundreds of thousands of domain—how many domain names do you have inthe DomainPower platform?Paolo: We have hundreds of thousands.Michael: But then I have to give you a portion of that revenue for the valueadded effort that you’re putting into this. Hopefully you’re making me moremoney, so clearly you deserve some of that. Do you disclose what thatrevenue share is?Paolo: We do. If you—when you come in and sign up on the website, it’s a60/40 rev share in your favor, and then if you are a significant customer, thenit’s negotiable.Michael: So if I’m bringing you 100,000 domain names, it’s negotiable?Paolo: Right.Michael: I’m going to go come on your system. You’re not going to chargeme anything to sign up. You’re taking my domain names, and then youPaolo DiVencenzo ( Page 31 of
  32. 32.  The  Domain  Name  Authority  figure out on these different platforms based on all the factors that we talkedabout, plus your predictive index—your data on the hundreds of thousands ofdomain names that you’ve had in the past—where best to put it.Let’s say that I give you a grouping of domain names that are educationrelated and based on prior experience and all the factors, you put it at parkingcompany A for a monetization platform, let’s say A, because it could be alead, it could be any number of ways people are actually buying that domaintraffic and rerouting it to another website.How do you test that over time to make sure that that’s still—like six monthsfrom now or a year from now—the best monetization platform for mydomain name group?Paolo: That is a great question. We never make the assumption thatsomething that was true a month ago is going to be true indefinitely. I’ll tellyou the way we do it internally. We always have a certain percentage oftraffic as test traffic. So our decision engine actually routes traffic to theproviders that do the best with it and the percentage that it routes to thoseproviders is proportionate to the extent to which they outperform otherproviders. So if you’re just killing it—if a platform’s just doing awesomeacross an entire group of domains—we’re going to send 99% of the traffic tothat given provider. If they’re doing okay versus Platform B, we’re going tosend maybe 60% to that provider.There will always be at least 1% test traffic just to make sure that thatperformance holds over time.Michael: I give you my domain names, you’re optimizing them over timecontinually and I don’t need to worry about it.Paolo: Correct.Michael: What else about DomainPower do you do that somebody mightwant to know about?Paolo DiVencenzo ( Page 32 of
  33. 33.  The  Domain  Name  Authority  Paolo: We do have other services besides our monetization platform. Wealso do premium brokerage. So if you have domain names that were—you’relooking to sell, we have a team of nine people who sit in an area of the officecalled The Pit and they make calls all day and they try to find users and getyou top dollar for those domains. So that’s another one of our services.Michael: Anything else about DomainPower that you want to talk about?Paolo: No. We’re having a new website coming out soon, so probably bythe time this video airs, we’ll have our new website up and we just encourageyou to call us. What we like to do is talk with you and find out how you’redoing on other platforms and we will be straight up as to whether we thinkwe can beat it by using our monetization decision engine.Michael: That sounds great. Here’s my final question for you, Paolo. I haveseen other—I know yours is the monetization decision engine, but there arecompetitors out there that do similar types of things. They either rotate yourtraffic or they have said that they will optimize the process.How should a user decide between your platform or their platform whenthey’re plugged into, say, 30 monetization systems? Is that the kind of thingthat they should try your system for six months and then try their system forsix months and then pick the one that generates the most revenue, or . . . Howwould you suggest to them that they make that decision?Paolo: I think you should always be—ultimately we’re all after making—anydomainers looking at making the most money they can off their portfolio. Soby all means, use that objective metric. Test us against them. No problem atall.I will tell you what we do a little bit differently than a lot of people. Imentioned the notion of predictive analytics. So we take a whole history ofdata, we map your domains to similar domains, and then we use ourknowledge about those other domains to start your domain at a high yield bysending it to partners that we think are going to perform the best for you.That’s a little bit different. I’d say a lot of platforms start assuming theyPaolo DiVencenzo ( Page 33 of
  34. 34.  The  Domain  Name  Authority  know nothing about a domain, and so it really starts from scratch in terms oftesting. It tests 50% of its traffic everywhere until it can get some earnings.So we’re a little—in my opinion, we’re a little bit quicker at getting thatinitial ramp up. The other place where we differ is that we don’t rotateindividual domains. We group domains because based on our experience, theaverage domain on our platform gets one visitor per day. It’s going to takeyou a year to get significant data back. The only answer in order to optimizeand to have enough data to make intelligent decisions is to group domains up.So that’s something that our platform does which is a little different.And then the other thing we do is we have accounts directly with otherplatform providers and we use our buying power to negotiate up their rates.So we’re not just bringing your accounts into our testing platform. These areour accounts, and we’ve negotiated up the rates.Michael: I just want to reiterate again because you were kind enough toshare in confidentiality with me some of your data that you collected beforeand after using this four step process, and it is a phenomenal lift.When people—oftentimes, they look at some of the headlines that I put onthe website—and I can say that I’ve looked at this data. I’ve seen yourdomain names, and I will maintain it confidential, but I’m appreciative thatyou provided it to me so I can say that I’ve given it the Mike Cyger stampthat I can see what you’ve done with these domain names and it’s a greatprocess and technology that you’ve built.Paolo: Thank you very much. It’s been great talking to you, Michael.Michael: So if you have a follow-up question, please post in the commentsbelow, and we’ll ask Paolo to come back and answer as many as he can.If people want to follow you, Paolo, are you on twitter? Can they followwhat you’re doing as you’re going through this process and making moremoney for customers and continuing to get into domain parking andmonetization?Paolo DiVencenzo ( Page 34 of
  35. 35.  The  Domain  Name  Authority  Paolo: Yes, sure. Our company has a twitter account, I believe the handle isDomain Holdings and we post there often. We post some of the premiumdomains that we have for sale as well as updates on the platformMichael: Great. And now I’m going to urge the audience as I always do atthis point. If you received value from this interview, please take a moment towrite a comment to Paolo and say thank you for sharing your four stepprocess, thank you for providing us some insight into the industry that sooften is just a black box. Another way you can say thank you is to like thison Facebook so you can share it with your network if you have a lotdomaining friends on there or entrepreneurs on there. Tweet it. Google+ it.Any of those social networks are great.Paolo, if somebody has a question about the process that they don’tnecessarily want to post here, is there an email address they can reach you at?Paolo: Yes, they can reach me directly at Paolo dot domainholdings dot com.Michael: That sounds great. Paolo DiVencenzo.Paolo: That’s P-A-O-L-O. I just realized it’s not as intuitive as it is to me.Michael: It is not. I’m glad you spelled that for our transcribers also.Paolo DiVincenzo, General Manager of DomainPower at Domain Holdings,thank you for being at DomainSherpa, sharing the details of your platformand helping others become successful domain name investors.Paolo: Thanks so much, Michael. I appreciate the opportunity.Michael: Thank you all for watching. Well see you next time.Watch the full video at: DiVencenzo ( Page 35 of